Fund Strategies and Market Commentaries
May 1, 2013
Midas Perpetual Portfolio employs a long term asset allocation strategy with an occasional use of investment leverage based on seasonal and other factors. In seeking its investment objective to preserve and increase the purchasing power value of its shares over the long term, the Fund typically targets its portfolio to invest approximately in gold assets, silver assets, Swiss franc assets, hard asset securities, and large capitalization growth stocks. During the first quarter of 2013, the Fund had taken an aggressive position with leveraged holdings but over the second quarter may seek to moderate this posture towards a more defensive allocation.
Midas Magic may employ aggressive and speculative investment techniques in seeking its investment objective of capital appreciation. Currently, the Fund holds a concentrated portfolio in quality companies with growth and/or value characteristics and is using leverage. The Fund holds shares in predominantly blue chip and other well-known companies, including some of the world’s strongest companies with global operations in insurance, technology, and banking. As the Fund pursues its capital appreciation objective, its holdings and allocations are subject to substantial change at any time. As economic conditions develop, the Fund may moderate its aggressive, quality, portfolio strategy by both reducing concentration and leverage in the near term.
is emphasizing larger companies with operations generating attractive cash flows, expanding growth profiles, less perceived political risk, and/or other special features. Since prices for both gold and mining companies collapsed at the beginning of the second quarter, the Fund is now considering gradually increasing its leverage, and re-focusing on the sector with an aggressive posture, with the intention of being possibly fully positioned should metal prices and investor sentiment improve. Many mining and other natural resource company shares appear to offer intriguing opportunities to the Fund as is seeks primarily capital appreciation and protection against inflation and, secondarily, current income.